HICBC

Benno1983

Good Afternoon,

Please can I have some guidance on the High Income Child Benefit Charge for 23-24

I received a letter in the post yesterday with a case reference number (not a demand). 

I am unsure if I need to do a self Assessment form. 

My salary for last year (23-24) was £66,670 with overtime. I have worked out that my NET income after tax and NI falls just below £50k.

My wife's salary is under £50k.

Do I need to do a self assessment?

Any advice would be appreciated.

TheSpectator

Your tax and NIC are not a factor in the calculation.

Benno1983

What if I was on the wrong tax code?

TheSpectator

Benno1983 said:

What if I was on the wrong tax code?

Irrelevant, it's based on your taxable income minus certain allowable deductions.

Benno1983

So judging by this I will have to pay all of the Child benefit back received for that year!

daveyjp

Those few details suggest you are above the threshold for HICBC, but we don't know your full financial situation so you need to do a self assessment.

You have until 31 January 25 to submit.

TheSpectator

Maybe not all of it. Plug your figures in here - https://www.gov.uk/child-benefit-tax-calculator

Benno1983

Thank you. I will submit later this evening.

Dazed_and_C0nfused

Benno1983 said:

Good Afternoon,

Please can I have some guidance on the High Income Child Benefit Charge for 23-24

I received a letter in the post yesterday with a case reference number (not a demand). 

I am unsure if I need to do a self Assessment form. 

My salary for last year (23-24) was £66,670 with overtime. I have worked out that my NET income after tax and NI falls just below £50k.

My wife's salary is under £50k.

Do I need to do a self assessment?

Any advice would be appreciated.

You seem to have misunderstood what "adjusted net income" is.

You cannot deduct either tax and NI.

Do you get money into a pension and, if so, what method is used to make these contributions?

That will be quite important.  And you have to understand the method to fully understand HICBC.

The usual methods are,

Relief at source
Net pay
Salary sacrifice 

Dazed_and_C0nfused

Benno1983 said:

Thank you. I will submit later this evening.

You need to understand your pension contributions situation before you can file a tax return.